Baird cuts Salesforce price target to $365, maintains Outperform

Published 29/05/2025, 11:10
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On Thursday, Baird analysts adjusted their outlook on Salesforce.com Inc. (NYSE:CRM) shares, reducing the price target from $400.00 to $365.00, while reiterating an Outperform rating for the company. With a market capitalization of $264.8 billion and impressive last twelve-month revenue of $37.9 billion, the adjustment follows Salesforce’s recent financial report, which delivered positive results, exceeding expectations in both revenue and earnings per share (EPS).

The company’s forecast for fiscal year 2026 revenue was revised upward, attributed primarily to favorable foreign exchange rates. InvestingPro analysis shows Salesforce maintaining impressive gross profit margins of 77.19% and healthy revenue growth of 8.72% over the last twelve months. Analysts at Baird noted the potential of Salesforce’s newer ventures, Data Cloud and Agentforce, which currently represent around $1 billion in annual recurring revenue (ARR). These initiatives are seen as relatively small contributors to the total revenue at present, but they are anticipated to significantly influence growth in fiscal year 2027 and beyond.

The analysts also mentioned Salesforce’s acquisition of Informatica, suggesting it could initiate discussions regarding the company’s readiness in artificial intelligence (AI) and data management. However, they indicated that they do not foresee a trend of large deals for Salesforce at this time. According to InvestingPro, which offers comprehensive analysis of 1,400+ US stocks through its Pro Research Reports, Salesforce currently shows strong financial health with multiple promising growth indicators.

The report concluded with a reaffirmation of the Outperform rating for Salesforce, signaling confidence in the company’s performance despite the reduction in the price target. Based on InvestingPro’s Fair Value analysis, the stock currently appears slightly undervalued. Salesforce’s strategic moves and the potential for future growth remain key points of interest for investors and market watchers alike.

In other recent news, Salesforce has reported its first-quarter results for fiscal year 2026, with revenue reaching $9.83 billion, marking an 8% year-over-year increase and surpassing analyst expectations. The company’s non-GAAP earnings per share stood at $2.58, slightly above the consensus estimate of $2.52. Salesforce’s remaining performance obligations totaled $60.9 billion, showing a 13% year-over-year growth. Analysts from Goldman Sachs increased Salesforce’s price target to $385, maintaining a Buy rating, citing the company’s robust financial performance and strategic expansion in the AI market. Similarly, Morgan Stanley (NYSE:MS) raised its target to $404, highlighting Salesforce’s Cloud Revenue Performance Obligation growth and reaffirming its Overweight rating. JPMorgan also maintained an Overweight rating with a $380 target, noting Salesforce’s impressive free cash flow and revenue growth. Stifel reiterated a Buy rating with a $375 target, emphasizing Salesforce’s strong positioning in AI and strategic market initiatives. Lastly, JMP Securities reaffirmed a Market Outperform rating with a $430 target, reflecting confidence in Salesforce’s resilience and growth potential amidst broader market volatility.

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